While many economists and the Federal Reserve thought that the initial price rises in the middle of 2021 were “transitory,” inflation is still high more than a year later. On top of it…
the U.S. labor market has remained persistently tight over recent months, putting upward pressure on wages.
As the persistently high inflation pressures the Federal Reserve to combat it aggressively, former Boston Federal Reserve President Eric Rosengren believes a recession in the U.S. is “quite likely” next year. Rosengren told CNBC that the U.S. central bank now looked likely to increase its terminal policy rate to more than the 5% forecast by investors, pushing the economy into a mild downturn in 2023.
In global news, The Bank of England warned recently that the U.K. is facing its longest recession since records began, with the economic downturn expected to extend well into 2024.
Amid the rising recession fears worldwide, investors have been skeptical about their investment decisions. However, we think Archer-Daniels-Midland Company (ADM) and Stellantis N.V.(STLA) can be bought without hesitation, given their fundamental strength.
Archer-Daniels-Midland Company (ADM)
ADM procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients worldwide. The company has three operational segments, Ag Services and Oilseeds; Carbohydrate Solutions; and Nutrition. It acquires, stores, cleans and transports agricultural raw materials, such as oilseeds, corn, wheat, milo, oats, and barley.
On September 14, ADM and PepsiCo, Inc. (PEP) announced a groundbreaking 7.5-year strategic commercial agreement to collaborate closely on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains.
The companies’ capabilities span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture while building their resilience to climate change.
On November 2, ADM declared a cash dividend of 40.0 cents per share on the company’s common stock, payable on Dec. 7, 2022.
For the third quarter ending September 30, 2022, ADM’s revenues increased 21.4% year-over-year to $24.68 billion. Its gross profit grew 36.6% from its year-ago value to $1.81 billion, while its adjusted net earnings per share improved 91.8% from its prior-year quarter to $1.86.
Analysts expect ADM’s revenue to increase 18.5% year-over-year to $101.04 billion for the current fiscal year ending December 2022. The consensus EPS estimate of $7.54 for the current year represents a 45.4% improvement year-over-year. Moreover…
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